Commercial Banking Career Path?
(Senior Monkey, 94
Points)
on 7/8/09 at 9:49pm
Does anyone know what the typical career path for commercial banking is along with compensation at each level, as well as if I'd need to get an MBA or CFA at some point? If not, could someone tell me about a forum that's more dedicated to "other" finance careers besides i-banking, consulting, etc.? This is a really good site, but it doesn't have too much info on the less prestigious careers like corporate finance, commercial banking and all that, so yeah. If anyone can help me out, that would be great.
thanks
Definitely not a CFA. People
Definitely not a CFA.
People in IB like to give commercial banking a lot of shit. NO, it is not the same thing as retail banking. NO, you are not necessarily "creating value" for the company. However, there are some important skills involved in underwriting and servicing a loan. However, in order to make money, you need to actually get on to the company's banking roster. This requires relationships, so an MBA would be valuable for comm banking for the same reason IB analysts go back to school even if they plan on moving up the IB ranks.
hey, thanks for the answer.
hey, thanks for the answer. I guess I'll just keep trying to ask this elsewhere before I get flamed xD.
I just realized, however, that there is something that this site might be able to help me with. I'm interested in operations at a BB bank. The problem is, I go to a non-target, so how hard would it be to break into that if I keep a high GPA?
I'm not really looking at being a financial analyst for the BB, and I know that a reason people trash operations here is because you can't move to the front office easily, but I'm not too concerned about that. I mostly want to use the work experience to get an MBA and move up the ladder. So how hard would it be to break into back office from a non-target?
Also, what is the career path for operations at the bank, and what does the work deal with? When I think of operations, I think of things like supply chains and that sort of thing, so is that what they do at a BB as well?
thanks again
If you're interested in
If you're interested in finance, commercial banking or internal finance >>>> ops
If you just want to be able to say "I work at [insert prestigiuos name]", then look into ops
Judging by your post, I'd say you are the first one. I've got to think commercial banking would be better for mba admissions then ops as well, but I'm not sure.
forgetting the finance part, what about just ops itself?
If you're interested in finance, commercial banking or internal finance >>>> ops
If you just want to be able to say "I work at [insert prestigiuos name]", then look into ops
Judging by your post, I'd say you are the first one. I've got to think commercial banking would be better for mba admissions then ops as well, but I'm not sure.
The thing with finance is, although I don't mind crunching numbers and interacting with clients, I DO NOT enjoy sales whatsoever, and I've read that the higher positions in i-banking and commercial banking both involve a lot of sales. I know for sure that sales is not something I'd be good at since I'm a fairly passive person that doesn't like to push things on people, and not the pushy, type A personality that those kinds of jobs require.
In addition, I think I'd be happy in operations. I think the supply chain, e-business kind of things (if that's even what they do at the Bulge Brackets) are interesting, and I really don't mind working behind the scenes doing the little things that keep the company afloat, which is I think what ops is about regardless of where you're at. So if I'd be happy in OPERATIONS, FORGET THE FINANCE, JUST OPERATIONS, is it a decent career path if I start at a BB? I'm not even looking to get filthy rich, so as long as I'd be in the 150-200k range after a few years, I'd be happy with my life, so can I do that in ops?
Also again, is it even possible to break into ops from a non-target if I keep a great GPA (I'm aiming for no less than 3.6-3.7), or would I just get trashed based off of my school?
bump
bump
150-200k in ops
Aren't I-bankers in the 150-200k range after a few years (assuming that would be a third year analyst)?
Typical career path
In commercial banking, most entry-level (i.e. newly college grads) start as some form of a credit analyst, underwriting various loan requests. From there, assuming you excel, you can branch into a relationship-manager type position (i.e. lender) or stay in the credit-administration side (underwriting) and move into Sr. Analyst positions and ultimately some form of Credit Officer.
That's the basic gist of it. Obviously with different banks/sizes, there are other options, but that's the traditional path. Lending or credit analysis.
Bump
Bump
You won't break six figures
You won't break six figures for a while in operations.
If the OP isn't interested in
If the OP isn't interested in sales than just go into ops. Frankly, sales at a higher end relationship manager level is more of an advisory role vs cold calling people ala Boiler Room. If you can't sell yourself then ops probably is the best place for you.
MSF Website
MACC Website
MSF Twitter
San Ford: In commercial
In commercial banking, most entry-level (i.e. newly college grads) start as some form of a credit analyst, underwriting various loan requests. From there, assuming you excel, you can branch into a relationship-manager type position (i.e. lender) or stay in the credit-administration side (underwriting) and move into Sr. Analyst positions and ultimately some form of Credit Officer.
That's the basic gist of it. Obviously with different banks/sizes, there are other options, but that's the traditional path. Lending or credit analysis.
This is exactly right. If your not into sales than you need to do ops, or some form of risk managment...which is different in commercial banking, i.e. loan documentation and basic cash flow, things of that nature. Commercial banking is pretty easy when compared to other finance jobs, in my opinion. Currently it is VERY competitive, because interest rates remain low, and banks can't make money off bonds (or other investments) like they use too. What this translates too is grow loans, without growing staff. The higher up you go, even if your a regional president at big bank, the more your expected to produce, so to avoid sales you usually have to go the admin., ops, or other back office. This is especially true to community banking (which is boring, again in my opinion).
My reccomendation to someone considering commercial banking is try to get on a big bank (JPM, BOA, WFC, Compass, CIti) anyone that offers a credit training program, because that is what all the community banks look for, so it gives you a lot options in the future.
What kind of options, outside
What kind of options, outside of commercial banking, do you think someone would have after going through a couple years of this at JPM, WF, etc.?
bump ^^^ curious to question
bump ^^^ curious to question above me
Bump, also curious about the
Bump, also curious about the above question. ^^
Yankees993: Bump, also
Bump, also curious about the above question. ^^
There are several threads on this topic (I've attempted to contribute to them).
Aside from moving up the ranks inside the corporate banks, you may be able to move to mezz groups, distressed debt groups/funds (if you work on the ABL side with SS, DIP), and POSSIBLY IBD (going to need a connection and a grad degree wouldn't hurt).
If you go get an MBA or CFA, you could move into IBD/PE or portfolio mgmt potentially. No situation is the same, but I've seen more guys at mezz, unitranche (BDCs) and SS HF/PE groups from commercial banking.